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heuristics-NASSIM NICHOLAS TALEB PDF
heuristics-NASSIM NICHOLAS TALEB PDF
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purportedly find funny. They would smile - perhaps need absence of shame at hiding risks, 3) To succeed
surreptitiously -otherwise. in school requires absence of common sense, 4) To
succeed in economics requires absence of
71. If someone is making an effort to ignore you, he is
understanding of probability, risk, or 2nd order effects
not ignoring you.
and about anything, 5) To succeed in journalism
72. A good man is warm and respectful towards the requires inability to think about matters that have an
waiter or people of supposedly lower financial and infinitesimal small chance of being relevant next
social condition. January, ...6) But to succeed in life requires a total
inability to do anything that makes you uncomfortable
73. Journalists feel contempt for those who fear them when you look at yourself in the mirror.
and a deep resentment for those who don't.
88. An economist is a mixture of 1) a businessman
74. When someone starts a sentence with the first half without common sense, 2) a physicist without brain,
containing "I", "not", and "but", the "not" should be and 3) a speculator without balls.
removed and the "but" replaced with "therefore.”
89. A prostitute who sells her body (temporarily) is
75. The only valid political system is one that can vastly more honorable than someone who sells his
handle an imbecile in power without suffering from it. opinion for promotion or job tenure.
76. Journalists cannot grasp that what is interesting is 90. Those with brains no balls become mathematicians,
not necessarily important; most cannot even grasp that those with balls no brains join the mafia, those with no
what is sensational is not necessarily interesting. balls no brains become economists.
77. Never buy a product that the owner of the company And those with brains and balls become
that makes it doesn't use, or, in the case of, say, artisans/entrepreneurs.
medication, wouldn't contingently use.
91. To have a great day: 1) Smile at a stranger, 2)
78. Injuries done to us by others tend to be acute; the Surprise someone by saying something unexpectedly
self-inflicted ones tend to be chronic. nice, 3) Give some genuine attention to an elderly, 4)
79. We often benefit from harm done to us by others; Invite someone who doesn't have many friends for
almost never from self-inflicted injuries. coffee, 5) Humiliate an economist, publicly, or create
deep anxiety inside a Harvard professor.
80. When someone writes "I dislike you but I agree
with you", I read "I dislike you because I agree with 92. The saying goes "those who can, do; those who
you." can't do, teach". But I've shown that those who can't
do shouldn't teach.
81. For a free person, the optimal - most opportunistic -
route between two points should never be the shortest (Green lumber fallacy)
one. 93. Mistakes detected by copy editors are not likely to
82. Just as eating cow-meat doesn't turn you into a be noticed by readers, and vice versa.
cow, studying philosophy doesn't make you wiser. 94. Accept the rationality of time, never its fairness and
83. I wonder how many people would seek excessive morality.
wealth if it did not carry a measure of status with it. 95. Swearing on the occasion, amid rich vocabulary, is
84. If the professor is not capable of giving a class costly signaling that you are self-owned. But don't
without preparation, don't attend. People should only squander it.
teach what they have learned organically, through 96. Bureaucracy is a construction designed to maximize
experience and curiosity… or get another job. the distance between a decision-maker and the risks of
85. Do not socialize with people much richer than you; the decision.
but if you do, do it in your own territory (restaurants 97. Remove all empty words from resume,
you can afford, wine, etc.) conversation, except when they aim at courtesy.
86. Corollary: If you socialize with someone with a 98. I want to write books that only those who read
smaller bank account than yours, you are obligated to them claim they did.
converse exactly as if you had the same means, eat in
the places where he eats, at no point in time show the 99. People are much less interested in what you are
pictures of your vacation in Provence or anything that trying to show them than what you are trying to hide.
hints at the differential in means.
100. Stiglitz understands everything about economics
87. Success in all endeavors is requires absence of except for tail risks: like knowing everything about
specific qualities. 1) To succeed in crime requires flight safety except for crashes.
absence of empathy, 2) To succeed in banking you
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101. When people say "I am investing for the long 120. The rational heuristic is to avoid any market
term", it means they are losing money. commentary from anyone who has to work for a living.
102. Did you notice that collecting art is to hobby- 121. I am rather fed up with those who tell me to be
painting as watching pornography is to doing the real nice & try to convince charlatans. The FDA didn't "try to
thing? Only difference is status. convince" charlatans to stop selling snake oil.
103. Statisticians understand the risks of roulette better 122. If a pilot crashes a plane, N=1 is not anecdote, if
than carpenters; probabilists understand the risks of he doesn't crash the plane, N=100 is anecdote.
GMOs better than biologists.
123. France took Algeria, hoping for a country to eat
104. Real life (vita beata) is when your choices cassoulet and instead France is now eating couscous.
correspond to your duties. Inverse effects are the norm.
105. The problem with the idea of "learning from one's 124. All rumors about a public figure are to be deemed
mistakes" is that most of what people call mistakes untrue until he threatens to sue.
aren't mistakes.
125. In a conflict, the middle ground is least likely to be
106. Never call someone an imbecile (or fucking idiot) correct.
unless he causes harm to others/system; there must be
126. The ancient Mediterranean : people changed rites
a moral dimension to insults.
as we do w ethnic food.
107. Probability is the intersection of the most rigorous
127. Risk takers never complain. They do.
mathematics and the messiest of life.
128. You are as good as how nice you are to people
108. We invented language to be vague, if you can sort
you don't have to be nice to.
of see what I mean.
129. Intellect without balls is like a racecar without
109. Someone said "We need more women in academic
tires.
philosophy." But we also need more men in academic
philosophy. 130. The idea is to be virtuous without being boring.
110. If you detect a repressed smile on the 131. When I die, I want the highest number of firemen,
salesperson's face, you paid too much for it. risk takers, & other real people and the smallest
number of academics to attend my funeral
111. Economics is about making simple things more
complicated, mathematics about making complicated 132. Multiplicative generosity- Limit your generosity to
things simpler. those who, in turn, given the circumstances, would be
equally generous towards others.
112. If powerful assholes don't find you "arrogant", it
means you are doing something wrong. 133. We tend to define "rude" less by the words used
(what is said) than by the status of the recipient (to
113. Anything people do, write, or say to enhance their
whom it is addressed).
status beyond what they give others shows like a mark
on their foreheads, visible to others but not to them. 134. Studying neurobiology to understand humans is
like studying ink to understand literature.
114. To insult a barbarian, use his own language: Cum
care carizas, rustice agis cum rustico, barbare loqueris 135. Since its inception, academia has been grounded
barbaro ,crasse cum crasso. in the idea that knowledge of the chemical composition
of ink will improve one's writing.
115. I was told to write medium sized books: The 2
most successful French novels in history: one is very 136. A golden saddle on a sick horse makes the
short (Le Petit Prince, ~80 p), other extra long (Proust's problem feel worse; pomp and slickness in form (TED-
Recherche, ~ 3200 p), following the Arcsine law. style) makes absence of substance nauseating
116. Never get into a business partnership with a 137. Another marker for charlatans: they don't voice
retired lawyer unless he has another hobby. opinions that can get them in trouble.
117. There is this prevailing illusion that debt is a 138. Increasingly, people don't become academics
renewable resource. because of intelligence, rather because of lower grasp
of disorder.
118. To say it bluntly, all the critics of my tail risk ideas
and strategies still work and have to work for a living. 139. The only people who think that real world
experience doesn't matters are those who never had
119. Polemic is a lucrative form of entertainment, as
real world experience.
the media can employ unpaid and fiercely motivated
actors.
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140. Automation makes otherwise pleasant activities 157. General Principle: the solutions (on balance) need
turn into "work". to be simpler than the problems.
141. Much of the difference between what is heaven 158. When you say something you think are just saying
and what is hell is branding. something, but you are largely communicating why you
had to say it.)
142. I recently had a meal in a fancy restaurant with
complicated dishes ($125 per person), then enjoyed a 159. If your beard is gray, produce heuristics/advice
pizza afterwards (straight out of the oven), $7.95. I but explain the "why". If your beard is white, skip the
wondered why the pizza isn't 20x the price of the why, just say what should be done.
complicated dish, since I'd rather have the former over
160. Humans need to complain just as they need to
the latter.
breathe. Never stop them; just manipulate them by
143.Contra the prevailing belief, "success" isn't being controlling what they complain about & supply them
on top of a hierarchy, it is standing outside all with reasons to complain.
hierarchies.
They will complain but will be thankful.
Or, even better, for those who can, not being aware of,
161. Erudition without bullshit, intellect without
or not giving a f*** about hierarchy.
cowardice, courage without imprudence, mathematics
144. In the medical and social, domains treatment without nerdiness, scholarship without academia,
should never be equivalent to silencing symptoms. intelligence without shrewdness, religiosity without
intolerance, elegance without softness, sociality without
145. A happier world is one in which everyone realizes
dependence, enjoyment without addiction, and, above
that 1) it is not what you tell people, it is how you say it
all, nothing without skin in the game.
that makes them feel bad, 2) it is not what you do to
them but how you make them look that gets them 162. Thinking that all individuals pursue "selfish"
angry, 3) they should be the ones putting themselves in interest is equivalent to assuming that all random
a specific category. variables have zero covariance.
146. Any action one does with the aim of winning an 163. Journalists reporting on journalism (such as the
award, any award, corrupts to the core. NYT intrigue) is an unconscious form of onanism.
147. The rules you explain are less convincing that the 164.Your duty is to scream those truths that one should
ones you don't explain- or have to explain. shout but that are merely whispered.
148. When you say something you think are just saying 165. My impression of Las Vegas: mostly prediabetic
something, but you are largely communicating *why* men wearing shorts.
you had to say it.
166.I feel robbed by those who make money with no
149. Complaints don't deliver complaints, they mostly skin in the game (Rubin, Geithner,& bankers) but I
reveal your weakness. despise attacks on inequality based on envy.
150. Envy, like thirst for revenge, is the wicked person's 167. FASTING: Every human should learn to read,
version of our natural sense of injustice. write, respect the weak, take risks in voicing disrespect
for the powerful when warranted, & fast.
151. It takes some humanity to feel sympathy for those
less fortunate than us; but it takes honor to avoid 168.The most important aspect of fasting is that you
envying those who are much luckier. feel deep undirected gratitude when you break the fast.
152. A good book gets better at the second reading. A 169. Financial inequalities are ephemeral, one crash
great book at the third. Any book not worth rereading away from reallocation; inequalities of status &
isn't worth reading. academobureaucrat "elite" are there to stay.
153. The alpha person at a gathering of "high status" 170. The modern hypocrite gives the designation
persons is often, detectably, the waiter. "respect" to what is nothing but fear of the powerful.
154. Money corrupts those who talk (& write) about it 171.
more than those who earn it.
a- You are free in inverse proportion to the number of
155. Nitpicking is the unmistakable mark of people to whom you can't say "fuck you".
cluelessness.
b- You are honorable in proportion to the number of
156. The main reason to go to school is to learn *how people to whom you can say "fuck you" with impunity
not* to think like a professor. but don't.
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172. Authors deplete their soul when the marginal were really not interested in money they would be
contribution of a new book is smaller than that of the writing literary essays.
previous one.
191. In the days of Suetonius, 60% of prominent
173. In real life exams someone gives you an answer educators (grammarians) were slaves. Today the ratio
and you have to find the best corresponding questions. is 97.1%, and growing.
174. Welfare is also money spent on the nonproductive 192. Most can't figure out why one can like rigorous
classes (economists, academico-bureaucrats, corporate knowledge & despise academics: yet they understand
executives, policymakers empty suits). that one can like food & hate canned tuna.
175. Anyone who likes meetings should be banned 193. A writer told me "I didn't get anything done
from attending meetings. (Heuristic) today". Answer: try to do nothing. The best way to
have only good days is to not aim at getting anything
176. Under opacity, incomplete information, and partial
done.
understanding, much of what we don't understand is
labeled "irrational". Actually almost everything I've written that has
survived was written when I didn't try to get anything
177. In your prayers substitute "protect us from evil"
done.
with "protect us from those who improve things for a
salary". [Flaneur] (Convexity)
178. The bottom half has been typically screwed by the
middle class. That's the entire story of Rome.
194. Paganism is decentralized theology.
179. Silence is only informational if you can speak
skillfully.
180. A risk you run when you write a book calling
journalists BS vendors is that all your reviewers will be
BS vendors. (Reply to Bill Easterly " A risk you run
when you write a book criticizing experts is that some
of your reviewers will be experts.")
181. Formal education is credentials plus negative
knowledge so it sort of works out on balance.
182. Distributive justice isn't taking from a risk taker
who earned honorably, it is keeping his probability of
losing it very high.
183. For social mobility to work, it needs to be a two-
way highway, with a large number of pre-rich and an
almost as large one of post-rich.
184. Three types of large corporations: those about to
go bankrupt, those that are bankrupt & hide it, those
that are bankrupt and don't know it.
185. To rephrase, every human should at all times have
equality in probability (which we can control), not
equality in outcome.
186. An academic (say Krugman) cannot lose his
tenure, but a businessman, poor or rich can go
bankrupt. That is the infuriating inequality.
187. For life to be really fun, what you fear should line
up with what you desire.
188. Every asshole is an angel somewhere.
189. Every angel is an asshole somewhere.
190. I wonder why newssuckers don't realize that if
news had the slightest predictive & nonanecdotal value
journalists would be monstrously rich. And if journalists